TaxTMI 
TaxTMI 
1989 (6) TMI 37
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....tion in the possession of respondent No. 1 on which he has reason to believe that any income has escaped assessment in any of those two years and/or there is any omission or failure on the part of the petitioner to disclose fully and truly all material facts necessary for the assessment for the relevant years and, as such, the conditions precedent for the exercise of jurisdiction by the Inspecting Assistant Commissioner of Income-tax under section 147 of the said Act do not exist. It is alleged that the power under section 147 of the said Act has been sought to be utilised as a mere cloak or pretence for making a fishing and roving enquiry or investigation with the object of reopening the assessment and, as such, the conditions precedent ne....
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....issuing the impugned notice. It is-submitted on behalf of the contesting respondents that the acts done and/or caused to have been done by the respondents concerned in issuing the impugned notice are well justified in law. There is nothing contrary to and/or inconsistant with the provisions of law in this behalf. The petitioner may very Well submit to the jurisdiction and place on record all relevant records which would be considered by the appropriate authority as the Income-tax Act is a complete code in itself and an abrupt visit to the writ court is an abuse of the process of law and it must be deprecated, if circumstances so demand. Having heard the arguments advanced on behalf of the respective parties, this court finds from sect....
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....to hold or to believe that income chargeable to tax has escaped assessment. This is an age-old principle of law which remains without being disturbed that unless and until one of these three conditions is fulfilled, initiation of any proceeding for any extraneous purpose is unwarranted and uncalled for and if the same is challenged, courts will not hesitate to quash the same. In the instant case, it is to be considered by this court as to whether the reasons are well-founded according to the provisions of law. It appears from the recorded reasons that the Inspecting Assistant Commissioner of Income-tax, Range-II, has thought it fit to issue the impugned notice only on the ground that in the earlier year the order of assessment was made by a....
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.... would not, in such a case, justify the reopening of the assessment. In the instant case, with all anxiety, this court has scrutinised the recorded reasons to find out whether the issuance of the notice under section 148 of the Act is well-founded as per the provisions of the statute or for something else. It will be clear by looking to the relevant recorded reasons which permitted respondent No. 1 to issue the impugned notice that for the earlier years there is application of rule 10(ii) of the Rules and in the subsequent years there is application otherwise although it is strongly argued on behalf of the petitioner that if the appropriate assessment of earlier years is referred in the proper perspective, it will convince the authorities t....
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....the information must come after the previous or the original assessment was made. In fact, the words 'in consequence of information' as used in section 34(1)(b) clearly postulate that the information must be subsequent to the original assessment sought to be reopened, and (3) that the information may be obtained even on the basis of the record of the previous assessment from an investigation of the materials on the record, or the facts disclosed thereby or from other enquiry or research into facts or law. These categories are in addition to the categories laid down by this court in Maharaj Kumar Kamal Singh's case [1959] 35 ITR 1 (SC) which has been consistently followed in several decisions of this court as shown above". An argume....